Boston, MA 04/24/2014 (wallstreetpr) – As Ford Motor Company (NYSE:F) prepares to disclose its first quarter earnings tomorrow, its shares have been witnessing some weakness of late. The recent weakness came in after the company announced that its margins for the current year might see some pressure. For the year 2014, the automaker forecasts profit to fall in between $7-$8 billion. Moreover, the company will launch 23 fresh models of its cars across the globe this year, which includes a revamped version of F-150 pickup trucks.
Solid In North America
As per a report in Forbes, the company’s profits will majorly flow in from North America. The region is not just a biggest market for the automaker but is also the most profitable for all. While, it’s operating margin last year came in at 9.9% in the region, it is expected to decline to 8-9% in this quarter, mainly on account of costs associated with the launch of 15 new or revamped versions of models in the region. Ford’s sales in February fell 6% year-over-year in the U.S. as well as its retail sales dropped 4%. The major reason for the drop was the cold weather, however, analysts expect a growing trend in the forthcoming quarters.
China Present A Bigger Market
Away from home, Ford Motor Company (NYSE:F) witnessed an extraordinary growth in China in 2013, where its sales grew strongly beating the sales of the region’s favorites Honda and Toyota. The current year too started off well as the company reported an expansion of 45% in the first quarter. At present, the company has been able to come to a position to overtake the sales of Hyundai and Nissan there. The main reason of this growth is accredited to company’s effort of bringing seven new and refreshed models there, which is believed to have attracted value seeking Chinese consumers. Thus, with nearly one million units sold in the region, China has come close to becoming one of the largest markets for the automaker.
